European Commission Approves €4.1 Billion Tranche for Ukraine under Ukraine Facility

The European Commission today sanctioned the second disbursement of approximately €4.1 billion for Ukraine from the EU’s Ukraine Facility. This financial aid is aimed at maintaining macro-financial stability and supporting the effective functioning of Ukrainian state institutions. The final decision now awaits approval from the EU Council, with the funds anticipated to bolster the budget by year-end, culminating in a total of €16.1 billion allocated in 2024.

European Commission President Ursula von der Leyen stated, "The EU remains steadfast in its support for Ukraine. At this critical juncture, as Ukraine continues to courageously counter Russian aggression and advance key reforms, our commitment remains unwavering. The positive assessment of this €4.1 billion disbursement reflects our trust, and we anticipate swift action from the Council of the EU in this regard."

Following a comprehensive review in October of Ukraine's second progress report, the European Commission verified the country's successful implementation of nine key indicators necessary for receiving this tranche. These indicators relate to significant legislative reforms across sectors including anti-corruption measures, business environment enhancements, labor market adjustments, regional policy, and upgrades in energy market and environmental protection frameworks.

Ukraine’s First Deputy Prime Minister and Minister of Economy, Yulia Svyrydenko, responded, "This approval is a testament to Ukraine's continued commitment to implementing robust reforms on its EU integration path. With ongoing support from the European Union, we can keep advancing our economic recovery and align our legislation with EU standards. We are now set on meeting the objectives slated for the final quarter."

Key achievements highlighted in the assessment include:

• Anti-Corruption Measures: Enhancement of the Specialized Anti-Corruption Prosecutor’s Office (SAP) capabilities, alongside legislative improvements to heighten anti-corruption efforts.
• Business Regulation: Implementation of an action plan aimed at easing business operations by cutting redundant regulations, promoting deregulation, and furthering digital administrative processes.
• Regional Development: Revision of the State Strategy for Regional Development to foster social cohesion and uplift living standards through improved governance.
• Environmental Legislation: Introduction of new laws focused on mitigating industrial pollution, marking a move towards alignment with EU environmental directives.

These milestones reflect the initial three quarters of 2024 during which Ukraine successfully enacted 25 indicators of the Ukraine Facility Implementation Plan. With 11 more indicators to address, Ukraine is poised to submit its next progress report in early 2025.

For ongoing updates and detailed insights into the implementation of the Ukraine Facility, the Ministry of Economy of Ukraine, serving as the national coordinator, invites stakeholders and interested parties to visit the official info hub at Ukraine Facility.

This strategic financial injection is geared towards empowering Ukraine amid its socio-economic challenges, thereby facilitating a closer alignment with European standards and practices.

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